The worldwide goal of reducing carbon emissions is unlikely to be met without substantial reduction in the transportation sector.
In the U.K., transport produced 27% of total emissions in 2019. Road transport alone accounts for 10% of global CO2 emissions, and road transport emissions are rising faster than those of any other sector, according to the UN Climate Change Conference (COP26) conference. “To meet the goals of the Paris Agreement, this transition needs to happen much more quickly,” says the conference website. “It must include not only cars, but vans, buses, trucks, and lorries.”[1]
Hitachi is playing a significant role in speeding this transition. In recent years, the company has transformed itself into a digital infrastructure company, combining its expertise in mobility, energy and digital technologies to deliver innovative decarbonization solutions to help society reach a zero-carbon emissions world.
“Our ambition is to become a climate change innovator by helping governments, cities and companies to cut carbon,” says Alistair Dormer, Chief Environmental Officer and Executive Vice President for Hitachi, Ltd. “The breadth of Hitachi allows us to combine information technology, operational know-how and physical products to tackle climate change, and ultimately improve people’s quality of life.”
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Finding the Right Business Models
The company’s goal is to help its customers reduce emissions through sound business models using new technologies and digital data to unlock new revenue streams, maximize efficiencies and minimize risk. “It’s quite expensive to transition to EV, so we are looking at the commercial economics to find ways to help organizations transition faster,” says Ram Ramachander, Chief Digital Officer for Hitachi Europe, Ltd., and Chief Commercial Officer for Hitachi’s Social Innovation Business in EMEA. “When you talk about the electrification of transportation, you’re talking about a highly complex ecosystem, all parts of which need to work together in ways they never have before. How do we get the total system – the vehicle, the battery, the charging infrastructure – to work together efficiently and cost effectively? You have to have a master plan.”
It is a complex undertaking that involves cooperation among business, government and finance, and requires a comprehensive re-thinking and restructuring of the world’s transportation systems, says Ramachander. The traditional electricity grid, for example, was not designed to use granular, real-time digital data. But the ability to collect and use such data is key to the success of the next-generation grid, to enable a system that collects and stores energy, then distributes it as needed based on current demand.
Hitachi’s “As a Service” Approach
Hitachi is involved in several projects to move transportation systems to electric. Most recently, Hitachi Europe and First Bus, one of U.K.’s largest bus operators, are transitioning the operator’s entire fleet to EV. The partnership uses Hitachi’s zero carbon fleet solution, which uses batteries and smart charging software to provide “battery as a service,” starting with the operator’s Caledonia Depot in Glasgow. It’s an example of a business model that can deliver cost certainty and reduce risks for operators. Telematics on buses and connectivity at charging points provide real-time information to manage the infrastructure, helping to balance demand and costs. Extra energy generated by onsite renewables can be stored in batteries and fed into the system as needed. “We put all that together as a service for which operators can pay per bus, per month,” Ramachander explains.
Hitachi and First Bus demonstrated the system during COP26, providing 28 electric buses to transport conference participants.
The project will also explore on-site no- or low-carbon energy business opportunities for the operator. Eventually, the Caledonia Depot may generate and consume its own electricity, and could provide zero-carbon charging hubs for other business fleets for a fee, generating revenue for First Bus.
Learning from the World’s Largest EV Trial
Hitachi also leads a consortium of organizations in the largest commercial EV trial in the world, called Optimise Prime. Participants include Royal Mail, Uber, UK Power Networks, Centrica and Scottish and Southern Electricity Networks. By building the world’s largest commercial electric vehicle data set and software, the consortium gains insight into practical ways of minimizing the up-front costs that limit widespread commercial deployment of EVs. Through data and smart infrastructure, the system could help operators better balance demand and network capacity.
Businesses striving to reach certain carbon emission reduction goals need to work with other ecosystem players and a partner that can guide them to the most efficient and economical path to net zero, says Ramachander. Hitachi has capabilities to bring all the relevant pieces together to help the transportation sector evolve. “We have the foundational abilities and credentials to help that transition happen,” he says. “There are few companies in the world that have the scale, size, financial rigor and engineering prowess to tackle this.”
Watch this panel discussion for more insights on the whether the mobility sector can achieve zero emissions.
Climate Change Innovators
The time for change is now – we must preserve our planet for future generations. The breadth of Hitachi allows us to combine information technology, operational know how and physical products to tackle climate change - and ultimately improve people's quality of life. We are applying that same innovation to our own business to contribute to a Net Zero society. Visit Climate Change Innovator - Hitachi Sustainabilityto learn how Hitachi Social Innovation is Powering Good and helping drive change across the globe.
[1] Source:ukcop26.org/transport/